Tod's Group at 2017 will slow down retail development and focus on digital

The Italian manufacturer of luxury shoes and handbags Tod's Group reported on the results of activities in the 2016 year. During the report, the group’s chief financial officer Emilio Macellari announced that in the 2017 year it is planned to reduce the number of new retail stores to 9-13 new points. 2016 stores were opened in 15, and 2015 in 25. This year, the group plans to close existing stores from 4 to 6, Footwear News writes.

Marcelari noted that the mainland China market began to recover, emphasizing that in the last couple of years it has been in a very bad situation. Earlier, the manager stated that Tod's sales in Hong Kong actually pulled the rest of the Chinese market.

The holding, which also owns the brands Roger Vivier, Fay and Hogan, reported a decrease in net profit in 2016 due to rising staff costs, the number of employees increased to 4,514, compared to 4,464 employees a year earlier.

Based on the Tod's Group report of the Milan Stock Exchange, the company's net profit was 86,3 million euros, compared to 92,7 million euros a year earlier.

Over the last 12 months that ended December 31, group sales fell by 3,2% to 1 billion euros. In Italy, they fell by 3,5% to 331,5 million euros. In the rest of Europe, the group’s total revenue grew by 0,6% to 250 million euros.

In the Americas, the group lost sales due to lower tourism in the region, with sales falling 8,4% to € 96,7 million. Sales in China increased by 6,8% to 210,3 million euros, while sales in other countries of the world increased by 0,9% to 135,5 million euros. The sales volume in South Korea has doubled, in Japan as a whole the level of sales remained at the level of the previous year.

Commenting on the results, Tod's CEO Diego Della Valle said the group intends to focus on organic growth of existing stores and plans to open several “new format” stores that will offer a new shopping experience. The changes will affect, first of all, the style.

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For example, at Paris Fashion Week, the Group presented a collaboration with the famous English tattoo designer Saira Hunjan - Tod's Tattoo, which resulted in a capsule collection of shoes and bags.

This collection was presented as a pop-up space in the flagship store of the brand in Paris, the walls of which were specially decorated with drawings by the designer for Fashion Week.

Diego Della Valais emphasized the importance of developing the digital division of the Group, and noted that the development of digital technologies has an increasing impact on business success.

Online commerce today accounts for 3-4% of Tod's Group's sales, while the average for the luxury segment is about 4-5%. According to Marcellari, for the development of digital, the company is ready to use all possible technologies that exist today.

Tod's Group Is an Italian company that produces luxury shoes and leather accessories. The company was founded in 1920 by the shoe maker Dorino Della Valle. The eldest son of the founder Diego Della Valle Diego Della Valle expanded production in the 1970s. began supplying products to American department stores. Under his leadership, the brands Tod's, Hogan and Fay appeared. Roger Vivier, a luxury handmade shoe brand, was acquired by the group in the mid-90s. biennium and began active development in the 2000s. The group is still owned by the Della Vale family. Tod's owns a large retail chain with stores in Europe, USA, China, Japan, Malaysia, Singapore, Hong Kong, Indonesia and Australia.